This article uses a multisector, multicountry, computable general equilibrium model to examine Chile's strategy of “additive regionalism”—negotiating bilateral free trade agreements with all of its significant trading partners. Taking Chile's regional arrangements bilaterally, only its...

In this paper, the authors develop a 10-region comparative static computable general-equilibrium model of Russia to assess the impact of accession to the World Trade Organization on the regions of Russia. The model allows for foreign direct investment in business services and endogenous...

We employ a computable general equilibrium model of the Russian economy to assess the impact of accession to the World Trade Organization (WTO) on income distribution and the poor. We incorporate all 55,098 households from the Russian Household Budget Survey as agents in the model. The model...

Recent reforms in trade policy in Turkey have produced a foreign trade regime that exhibits very little antiexport bias on average. A quantitative, multisectoral general equilibrium model of the Turkish economy shows that piecemeal trade policy reform, based on first-best rationales that are...

We model the effects of completion of the internal market in the European Union on trade, production and market structure. The impetus for change comes from the removal of border costs, as well as increased competition from the greater ability of EU buyers to substitute among the products of...

A multiregion computable general equilibrium model is used to evaluate the regional, multilateral, and unilateral trade policy options of Mercosur from the perspective of the welfare of all potential partners in several proposed agreements. The focus for Brazil is on poverty impacts. The results...

Even if trade liberalization results in aggregate welfare gains over all households, it is possible that the poorest households could lose. We illustrate two approaches to designing trade liberalization in Turkey which ensure that the poor will not lose. The first approach uses direct...

With a CGE model, we quantify the impact of the Customs Union between Turkey and the European Union (EU). Since the average tariff on non-agricultural imports will be less than 2 percent, the trade diversion costs of the Customs Union are quite small. Improved access to third country markets...

Using an applied general equilibrium model, we find that the EU–Morocco free trade area (FTA) will increase Moroccan welfare by about 1.5% of its GDP, showing that trade diversion is not dominant. The gains increase to about 2.5% of GDP if Morocco adds trade liberalization with the rest of the...

Despite economic theory and empirical literature that have shown that wide availability of business services contributes significantly to productivity gains and growth, economic modelers have been slow to meaningfully incorporate services into their models. This paper employs a 52-sector, small,...